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(Note: this story was updated to reflect that the moratorium was signed into law by President Biden on April 14.)

The APTA-supported moratorium on the 2% sequester reduction to payment under Medicare will be reinstated through the end of 2021, now that both chambers of Congress have agreed on a bill that extends a suspension of cuts that, until the pandemic, had been taking place since 2013. The bill was signed into law by President Joe Biden on April 14.

The CARES Act of 2020 included a temporary suspension of the regular sequestration reduction, which amounted to a 2% boost to anticipated Medicare payment. Congress then extended the moratorium to March 31, 2021, with a Dec. 31, 2020, expiration date.

In March, the House passed a bill that included a moratorium until the end of 2021; the Senate then passed a compromise bill, which needed to be passed by the House. The House did just that on April 13, approving the measure by a vote of 348-38. The legislation was signed into law the next day.

The moratorium is retroactive to April 1 to avoid a temporary return to the sequestration-related cuts. CMS has been holding claims with April dates of service in anticipation of the extension, and additional guidance is expected once the legislation becomes law. APTA will share developments from CMS as they happen.


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